Which of the following control inflation through policies regarding taxation and government spending in a market economy?

Question

Quizplus · Accepted Answer

Fiscal policies involve the government's use of taxation and government spending to influence the economy. One of the goals of fiscal policy is to control inflation by adjusting taxes and spending to encourage or discourage economic activity. Monetary policies, on the other hand, involve the control of the money supply and interest rates by a central bank to influence economic growth and inflation. Social policies and trade policies may also indirectly affect inflation but are not directly used for its control.

Which of the Following Control Inflation Through Policies Regarding Taxation